Summit Midstream Partners (NYSE:SMC) Trading Down 4.1% - What's Next?

Key Points

• Summit Midstream Partners fell 4.1% to about $31.17 in thin trading, with volume down 96% from its average. The stock remains below the consensus analyst target of $43.00.
• Analyst sentiment is moderately bullish: two analysts rate SMC a Buy and two rate it a Hold, while TD Cowen raised its price target to $43.00. The company also beat quarterly EPS expectations, reporting $0.11 versus the projected loss of $0.36, though revenue missed estimates.
• The board authorized a $35 million share-repurchase program, covering up to 6.5% of outstanding shares. Insiders own nearly 43% of the company, while institutional investors recently initiated several positions and own a similar percentage.

Summit Midstream Partners, LP (NYSE:SMC - Get Free Report) fell 4.1% on Tuesday . The company traded as low as $31.43 and last traded at $31.1650. 2,629 shares changed hands during mid-day trading, a decline of 96% from the average daily volume of 61,457 shares. The stock had previously closed at $32.51.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on SMC. Summit Redstone set a $39.00 price objective on shares of Summit Midstream Partners in a research report on Monday, August 3rd. TD Cowen upped their target price on shares of Summit Midstream Partners from $39.00 to $43.00 and gave the company a "buy" rating in a research note on Wednesday, August 12th. Finally, Weiss Ratings raised shares of Summit Midstream Partners from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, August 21st. Two equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $43.00.

Summit Midstream Partners Stock Performance

The stock has a 50-day simple moving average of $32.61 and a 200-day simple moving average of $30.99. The company has a market capitalization of $640.52 million, a price-to-earnings ratio of -28.29 and a beta of 0.74. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 1.45.

Summit Midstream Partners (NYSE:SMC - Get Free Report) last released its earnings results on Monday, August 10th. The company reported $0.11 EPS for the quarter, beating the consensus estimate of ($0.36) by $0.47. The company had revenue of $155.01 million during the quarter, compared to analysts' expectations of $169.00 million. Summit Midstream Partners had a negative return on equity of 0.04% and a negative net margin of 0.06%. On average, analysts anticipate that Summit Midstream Partners, LP will post 0.4 earnings per share for the current year.

Summit Midstream Partners declared that its board has approved a share buyback plan on Monday, June 1st that authorizes the company to buyback $35.00 million in outstanding shares. This buyback authorization authorizes the company to purchase up to 6.5% of its stock through open market purchases. Stock buyback plans are often a sign that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling at Summit Midstream Partners

In other news, VP James David Johnston sold 2,600 shares of the company's stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $29.72, for a total value of $77,272.00. Following the sale, the vice president owned 75,357 shares in the company, valued at approximately $2,239,610.04. This represents a 3.34% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 42.96% of the company's stock.

Institutional Trading of Summit Midstream Partners

Several hedge funds and other institutional investors have recently bought and sold shares of SMC. Engineers Gate Manager LP bought a new position in Summit Midstream Partners during the second quarter worth $305,000. Squarepoint Ops LLC bought a new stake in Summit Midstream Partners during the second quarter valued at $238,000. Odyssean LLC acquired a new stake in shares of Summit Midstream Partners during the second quarter worth $448,000. Ancora Advisors LLC acquired a new stake in shares of Summit Midstream Partners during the second quarter worth $143,000. Finally, Valeo Financial Advisors LLC bought a new position in shares of Summit Midstream Partners in the 2nd quarter worth about $268,000. 42.97% of the stock is owned by institutional investors.

Summit Midstream Partners Company Profile

Summit Midstream Partners, LP is a midstream energy company that develops, owns and operates infrastructure used to gather, process and transport natural gas, crude oil and produced water. Its systems connect oil and gas producers with downstream pipelines, processing facilities and other energy markets.

The company's assets have historically included natural gas gathering and processing systems, crude oil gathering infrastructure and water-handling services in several major U.S. producing regions, including the Rocky Mountains, the Williston Basin, the Piceance Basin and the Permian Basin.

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